NBA star sells only 10% of his tokenized contract
Professional basketball player Spencer Dinwiddie has had a disappointing response to his offer of tokenized Bitcoin Rush stock in his $34 million contract with the National Basketball Association (NBA).
The token sale came almost a year after he first announced his intention to issue tokens of value representing fractional ownership in his NBA contract, with each „SD26 professional athlete token“ representing a $150,000 share of the contract.
The Bank of Lithuania launched a crypto-currency, but only for collectors
Only eight investors are involved
The Brooklyn Nets guard intended to sell 90 shares valued at USD 13.5 million, but Form D filed with the US Securities and Exchange Commission (SEC) reveals that only nine shares were issued in exchange for USD 1.35 million, which is a mere 10% of Dinwiddie’s target.
Etherscan data indicates that only eight investors participated in the offering and Dinwiddie has not acknowledged the completion of the sale on Twitter.
What is the difference between token, cryptomoney, virtual currency and digital currency?
Dinwiddie’s long road to tokenization
After announcing his intention to issue tokenized shares in his contract during September 2019, Dinwiddie faced stiff opposition from the NBA, which initially threatened to terminate Dinwiddie’s contract if he proceeded with the sale.
After a series of delays, the SEC file indicates that Dinwiddie began selling the tokens as of January 10.
CZ shares his thoughts on how to judge the success of a token
There were signs that the sale wasn’t going very well. In May, Dinwiddie also launched an unsuccessful crowdfunding campaign that sought to sell the contract for the cash equivalent of 2,635.8 Bitcoins (BTC), which was equivalent to USD 24.6 million at the time.
Dinwiddie tested positive for COVID-19
Dinwiddie will not participate in the upcoming NBA restart because he tested positive for the coronavirus in early July.